From GlobeNewswire:

ChampionX Corporation has released its fourth-quarter and full-year 2023 results, showing a 4% decrease in revenue to $943.6 million. However, net income attributable to ChampionX increased by 14% to $77.2 million. Full-year net income was up by 103% to $314.2 million. Additionally, $118 million of common stock was repurchased during Q4’23. The share repurchase program is authorized for an increase of $1.5 billion. The quarterly dividend has increased by 12% to $0.095 per share.

CEO Sivasankaran Somasundaram shared that 2023 represented a year of strong earnings momentum, robust adjusted EBITDA growth, and consistent free cash flow generation. Revenue in Q4 was $944 million, with an increase in international sales. Net income increased year-over-year by 14%, but decreased 1% sequentially. Also, championX repurchased $118 million of common stock in Q4’23 and $277 million in full-year 2023.

ChampionX continued its strong cash flow profile, yielding $169 million in cash during the fourth quarter, making up 219% of net income. ChampionX also returned $343 million of cash to its shareholders throughout 2023, representing 63% of cash flow from operating activities and 83% of free cash flow. With a strong balance sheet, liquidity reached $959 million by year-end, including $289 million of cash and $670 million of available capacity on the revolving credit facility.

Looking ahead to 2024, ChampionX is expecting a positive growth year, driven by market fundamentals, particularly for international businesses. The company anticipates added adjusted EBITDA and margin improvement throughout the year. A projected Net income margin is 12.1%, and 21.0% for adjusted EBITDA margin. In the first quarter, issued revenue is to range from $908 million to $938 million with a projected adjusted EBITDA of between $179 million to $189 million.

Production Chemical Technologies revenue in Q4 was $634.1 million, up 5% sequentially, while digital products revenue was $52.7 million, a decrease of 9% from the previous quarter. Reservoir Chemical Technologies revenue was $21.4 million, a decrease of 15% from the previous quarter. Board approved an increase in share repurchase program authorization to $1.5 billion and to increase the regular quarterly dividend by 12%.



Read more: ChampionX Reports Fourth Quarter and Full Year 2023